There are a lot of scams that are out there when it comes to different companies that offer you the ability to get cash for your gold. The most important thing to do, research! Make sure you have the necessary information to know the legitimate companies from those that will scam.
There are certain scams that you will find on both ends of the spectrum. No matter if you are going through a web based organization or even in your home town, be aware that you will see scams in both realms.
The most common scam that you will come across is in the way that the agency representatives will talk to you. The most familiar is how the gold is weighed. Most dealers actually weigh by the gram while others will use what is known as pennyweight. In many cases, the dealer will tell you that they weigh by pennyweight when in fact, they actually do use a gram scale of measurement. By telling you that they are paying by the pennyweight, be aware that this form of measurement actually pays less for the gold than the gram measurements that should be used if the dealer says they use the gram scale. If you hear a change up when discussing this with the agencies, be careful.
Make sure you know what the Karat weight of your gold is. It is important to separate out the different Karat weights. This is because dealers pay differently for the different weights of gold. Standard measurements are 24, 14 and 10 karats. Of course if the gold is 24 karat you will receive more for the gold. However, the number of grams will also play a factor too.
The price of gold does vary, so be sure to check and find out what gold is worth before you decide to cash it in. Contact the dealer and find out how up to date their pricing is. This will help give you leverage. If possible take print outs of the most recent pricing available for gold. You will be glad that you did. You will get more bang for your buck and have a tool for negotiations. That’s right, even in this industry, you may have to haggle for the best price for your gold.
Protect yourself and your gold at all costs. Shop around your local area first. This is where you may find the best deals for selling your gold. Research the different stores in the area, see if there are any alerts that you need to be aware of. Next, search online sites, again, check to see if there are any scams or alerts that you may need to know about for the particular company. Do not use roaming dealers, these are people that tend to wonder to a city for a very short period of time and purchase gold. They are usually the ones that will scam you out of the gold and give you very little money in return for your investments.